Calif. Attorney General Approves Transfer Of 6 Nonprofit Hospitals
The transfer involves the Daughters of Charity Health System and the BlueMountain Capital Management, a New York-based hedge fund.
The San Francisco Chronicle:
Kamala Harris OKs Complex Deal To Save California Hospital Chain
State Attorney General Kamala Harris approved a deal Thursday that allows a New York hedge fund to manage Los Altos Hills’ Daughters of Charity Health System in what’s considered the largest and most complex nonprofit hospital transaction in the state’s history. The long-awaited deal and the money that BlueMountain Capital Management would infuse into Daughters of Charity could save a struggling Catholic hospital chain that includes Daly City’s Seton Medical Center, O’Connor Hospital in San Jose, St. Louise Regional Medical Center in Gilroy and two Southern California hospitals as well as Seton Coastside, a nursing center in Moss Beach. (Colliver, 12/3)
The San Jose Mercury News:
California Attorney General Kamala Harris Grants Conditional Approval For Hospital Deal
Ending months of uncertainty, California Attorney General Kamala Harris late Thursday gave her conditional approval for the largest nonprofit hospital transaction in state history -- and the first to involve a hedge fund. Harris' provisional consent allows BlueMountain Capital Management to invest in the troubled nonprofit Daughters of Charity Health System, with an option to purchase the Los Altos Hills-based hospital chain after three years. (Seipel, 12/3)
The Associated Press:
California AG Approves Transfer Of 6 Nonprofit Hospitals
California's attorney general has conditionally approved the transfer of a financially troubled chain of nonprofit hospitals to a for-profit entity. The terms outlined by Attorney General Kamala Harris on Thursday require the six hospitals of the Daughters of Charity Health System operate as nonprofit health centers for at least three years. After that, BlueMountain Capital Management can exercise an option to purchase the hospitals and turn them into for-profit centers. The agreement calls for BlueMountain to pay $100 million for the right to buy. (Hair, 11/4)
News outlets in Ohio and North Carolina report on other hospital news -
The Cleveland Plain Dealer:
Cleveland Hospital Systems Agree To Stop Diverting ER Traffic By Next Year, Accept EMS Patients 24/7
In a breakthrough agreement, Cleveland hospital systems have struck a deal to stop the periodic closure of their emergency rooms to help ensure more timely and effective care for the region's patients, city and hospitals officials said. The accord means that by Feb. 15 of next year, emergency rooms in the city will be accepting EMS patients around the clock, regardless of their traffic volumes. (Ross, 12/4)
North Carolina Health News:
Former Operator Of Yadkin Hospital Files Countersuit
The former operator of the Yadkin Valley Community Hospital has responded to a suit filed against it in May by the Yadkin County government and is countering with claims of its own. In June, that court found CAH to be in contempt for closing the 22-bed hospital when a temporary restraining order to keep it open was in effect. Judge Terrence Boyle ordered CAH to pay damages to Yadkin County for expenses the county incurred from the day the hospital closed until it reopens. Those expenses will include the cost of around-the-clock EMT personnel, maintenance costs, attorney and consultant fees and employee compensation. The for-profit CAH is now asking for a minimum of $75,000 from the county. It has also requested a jury trial. (Sisk, 12/3)
